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Addendum to Plaintiff’s Motion for Preliminary Approval of Class Action Settlement - 1 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Mike Arias (CSB #115385) [email protected] Alfredo Torrijos (CSB #222458) [email protected] ARIAS SANGUINETTI WANG & TORRIJOS, LLP 6701 Center Drive West, 14th Floor Los Angeles, California 90045 Telephone: (310) 844-9696 Facsimile: (310) 861-0168 Steven L. Woodrow* [email protected] Patrick H. Peluso* [email protected] Taylor T. Smith* [email protected] WOODROW & PELUSO, LLC 3900 East Mexico Avenue, Suite 300 Denver, Colorado 80210 Telephone: (720) 213-0675 Facsimile: (303) 927-0809 *Pro Hac Vice Attorneys for Plaintiff and the Classes UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA WESTERN DIVISION Edwardo Munoz, individually and on behalf of all others similarly situated, Plaintiff, v. 7-Eleven, Inc., a Texas corporation, Defendant. Case No. 2:18-cv-03893-RGK-AGR ADDENDUM TO PLAINTIFF’S MOTION FOR PRELIMINARY APPROVAL OF CLASS ACTION SETTLEMENT Judge: Hon. R. Gary Klausner Courtroom: 850 Complaint Filed: May 9, 2018 Plaintiff Edwardo Munoz (“Plaintiff”) files this Addendum to Plaintiff’s Motion for Preliminary Approval of Class Action Settlement (dkt. 85). Attached hereto as Exhibit A is the revised Stipulation of Settlement, Settlement Agreement, Case 2:18-cv-03893-RGK-AGR Document 90 Filed 07/29/19 Page 1 of 3 Page ID #:1062

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Page 1: ARIAS SANGUINETTI WANG & TORRIJOS, LLP · tsmith@woodrowpeluso.com WOODROW & PELUSO, LLC 3900 East Mexico Avenue, Suite 300 Denver, Colorado 80210 Telephone: (720) 213-0675 Facsimile:

Addendum to Plaintiff’s Motion for Preliminary Approval of Class Action Settlement - 1 -

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Mike Arias (CSB #115385) [email protected] Alfredo Torrijos (CSB #222458) [email protected] ARIAS SANGUINETTI WANG & TORRIJOS, LLP 6701 Center Drive West, 14th Floor Los Angeles, California 90045 Telephone: (310) 844-9696 Facsimile: (310) 861-0168 Steven L. Woodrow* [email protected] Patrick H. Peluso* [email protected] Taylor T. Smith* [email protected] WOODROW & PELUSO, LLC 3900 East Mexico Avenue, Suite 300 Denver, Colorado 80210 Telephone: (720) 213-0675 Facsimile: (303) 927-0809 *Pro Hac Vice Attorneys for Plaintiff and the Classes

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA WESTERN DIVISION

Edwardo Munoz, individually and on behalf of all others similarly situated, Plaintiff, v. 7-Eleven, Inc., a Texas corporation,

Defendant.

Case No. 2:18-cv-03893-RGK-AGR

ADDENDUM TO PLAINTIFF’S MOTION FOR PRELIMINARY APPROVAL OF CLASS ACTION SETTLEMENT Judge: Hon. R. Gary Klausner Courtroom: 850 Complaint Filed: May 9, 2018

Plaintiff Edwardo Munoz (“Plaintiff”) files this Addendum to Plaintiff’s

Motion for Preliminary Approval of Class Action Settlement (dkt. 85). Attached

hereto as Exhibit A is the revised Stipulation of Settlement, Settlement Agreement,

Case 2:18-cv-03893-RGK-AGR Document 90 Filed 07/29/19 Page 1 of 3 Page ID #:1062

Page 2: ARIAS SANGUINETTI WANG & TORRIJOS, LLP · tsmith@woodrowpeluso.com WOODROW & PELUSO, LLC 3900 East Mexico Avenue, Suite 300 Denver, Colorado 80210 Telephone: (720) 213-0675 Facsimile:

Addendum to Plaintiff’s Motion for Preliminary Approval of Class Action Settlement - 2 -

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and Proposed Notice of Class Action Settlement. (See Ex. A.) The attached Exhibit

A is intended to cure the defects highlighted in the Court’s Order Re: Plaintiff’s

Motion for Preliminary Approval of Class Action Settlement. (Dkt. 89.)

Respectfully submitted,

Dated: July 29, 2019 Edwardo Munoz, individually and on behalf

of all others similarly situated,

By: /s/ Patrick H. Peluso One of Plaintiff’s Attorneys

Mike Arias (CSB #115385) [email protected] Alfredo Torrijos (CSB #222458) [email protected] ARIAS SANGUINETTI WANG &

TORRIJOS, LLP 6701 Center Drive West, 14th Floor Los Angeles, California 90045 Telephone: (310) 844-9696 Facsimile: (310) 861-0168 Steven L. Woodrow* [email protected] Patrick H. Peluso* [email protected] Taylor T. Smith* [email protected] WOODROW & PELUSO, LLC 3900 East Mexico Avenue, Suite 300 Denver, Colorado 80210 Telephone: (720) 213-0675 Facsimile: (303) 927-0809 *Pro Hac Vice Attorneys for Plaintiff and the Classes

Case 2:18-cv-03893-RGK-AGR Document 90 Filed 07/29/19 Page 2 of 3 Page ID #:1063

Page 3: ARIAS SANGUINETTI WANG & TORRIJOS, LLP · tsmith@woodrowpeluso.com WOODROW & PELUSO, LLC 3900 East Mexico Avenue, Suite 300 Denver, Colorado 80210 Telephone: (720) 213-0675 Facsimile:

Addendum to Plaintiff’s Motion for Preliminary Approval of Class Action Settlement - 3 -

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CERTIFICATE OF SERVICE

The undersigned hereby certifies that a true and correct copy of the above

titled document was served upon counsel of record by filing such papers via the

Court’s ECF system on July 29, 2019.

/s/ Patrick H. Peluso

Case 2:18-cv-03893-RGK-AGR Document 90 Filed 07/29/19 Page 3 of 3 Page ID #:1064

Page 4: ARIAS SANGUINETTI WANG & TORRIJOS, LLP · tsmith@woodrowpeluso.com WOODROW & PELUSO, LLC 3900 East Mexico Avenue, Suite 300 Denver, Colorado 80210 Telephone: (720) 213-0675 Facsimile:

EXHIBIT A

Case 2:18-cv-03893-RGK-AGR Document 90-1 Filed 07/29/19 Page 1 of 55 Page ID #:1065

Page 5: ARIAS SANGUINETTI WANG & TORRIJOS, LLP · tsmith@woodrowpeluso.com WOODROW & PELUSO, LLC 3900 East Mexico Avenue, Suite 300 Denver, Colorado 80210 Telephone: (720) 213-0675 Facsimile:

1 Steven L. Woodrow* [email protected]

2 Patrick H. Peluso* ppeluso(a),woodrowpeluso .com

3 Taylor T. S"""mith* [email protected]

4 WOODJ<OW & PELUSO, LLC 3900 East Mexico Avenue, Suite 300

5 Denver, Colorado 80210 Telephone: (720) 213-0675

6 Facsimile: (303) 927-0809

7 * Pro Hae Vice

8 Attorneys for Plaintiff and the alleged Classes

9 Julie R. Trotter [email protected]

1 0 Delavan J. Dickson [email protected]

11 Kent R. Christensen kchristensen(a),callj en sen. com

12 CALL & JENSEN 610 Newport Center Drive, Suite 700

13 Newport Beach, California 92660 Telephone: 949-717-3000

14 Facsimile: 949-717-3100

15 Attorneys for Defendant

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[ Additional counsel appearing on signature page]

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA, WESTERN DIVISION

Edwardo Munoz, individually and on behalf of all others similarly situated,

Plaintiff,

V.

7-Eleven, Inc., a Texas corporation,

Defendant.

STIPULATION OF SETTLEMENT

Case No. 2:18-cv-03893-RGK-AGR

STIPULATION OF SETTLEMENT

Judge: Hon. R. Gary Klausner Magistrate Judge: Hon. A. Rosenberg

- 1 -

Complaint Filed: May 9, 2018 TrialTiate: July 2, 2019

Case 2:18-cv-03893-RGK-AGR Document 90-1 Filed 07/29/19 Page 2 of 55 Page ID #:1066

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1 This Stipulation of Settlement (the "Agreement" or "Settlement Agreement")

2 is dated June 1 7, 2019 (irrespective of when signed for reference purposes), and is

3 entered into by and among (i) Plaintiff Edwardo Munoz on behalf of himself and the

4 Settlement Class (as defined below), and (ii) Defendant 7-Eleven, Inc. ("7-Eleven"

5 or "Defendant"). This Agreement is intended by the Parties to fully, finally, and

6 forever resolve with prejudice, discharge, and settle the Released Claims ( as defined

7 below), as well as any and all other matters at issue, or potentially at issue, in this

8 litigation, upon and subject to the terms and conditions of this Agreement and

9 subject to the final approval of the Court having jurisdiction over the Parties and

10 these Released Claims.

11

12

13 A.

RECITALS

On May 9, 2018, named plaintiff Edwardo Munoz filed a class action

14 complaint and jury demand in this Court in the above-captioned action on behalf of

15 himself and all others similarly situated against Defendant 7-Eleven, Inc.

16 B. Following meet-and-confer efforts between the Parties, Plaintiff filed a

17 First Amended Complaint on July 9, 2018 ("FAC"), which is the operative complaint

18 in this matter. The FAC alleges that 7-Eleven violated the Fair Credit Reporting

19 Act's ("FCRA") "stand alone" and "clear and conspicuous" requirements of 15

20 U.S.C. § 1681 b(b )(2)(A)(i) with the background check disclosure and authorization

21 form ("Form") Plaintiff and the Class executed as part of their newhire paperwork.

22 The FAC sought damages and injunctive relief on behalf of a nationwide class.

23 C. On October 19, 2018, the Court, the Honorable R. Gary Klausner

24 presiding, granted Plaintiffs Motion for Class Certification (dkt. 43).

25 D. Prior to and following class certification, and throughout the case, the

26 Parties have engaged in motion practice, class certification, written and oral

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1 discovery, and informal discovery regarding the size and scope of the Class and the

2 underlying merits of the case.

3 E. On April 9, 2019, counsel for Plaintiff Munoz, 7-Eleven's corporate

4 representative, and counsel for 7-Eleven engaged in a full-day mediation in Toronto,

5 Ontario, Canada, with Michael Dickstein of Dickstein Dispute Resolution, a well-

6 respected mediator, in an attempt to resolve the case.

7 F. Through the mediation process, the Parties conducted further informal

8 discovery and exchanged additional information about the size and scope of the

9 Class.

10 G. Following extensive back-and-forth discussions and negotiations

11 facilitated by Mr. Dickstein, the Parties reached an agreement on the framework of

12 the proposed settlement and the relief to be made available to the Class upon Court

13 approval.

14 H. Fallowing an agreement in principle with respect to the relief to be

15 afforded to the Class, the Parties negotiated an incentive award for the proposed

16 Class Representative and reasonable attorneys' fees for proposed Class Counsel.

17 I. At all times, 7-Eleven has denied and continues to deny all wrongdoing

18 whatsoever and has denied and continues to deny that it committed, threatened, or

19 attempted to commit any wrongful act or violation of any law or duty alleged in the

20 Action, including but not limited to the FCRA. 7-Eleven also contends that it has

21 acted properly in all respects in connection with its procurement and use of

22 consumer reports/background checks for applicants and employees.

23 J. 7-Eleven also denies: (1) each and every claim and contention alleged;

24 (2) all charges of wrongdoing or liability against it or its agents arising out of any

25 conduct, statements, acts, or omissions alleged in the Action; and (3) that Plaintiff or

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1 the Class are entitled to any form of damages or other relief based on the conduct

2 alleged in the Action.

3 K. 7-Eleven also maintains that it has strong, meritorious defenses to the

4 claims alleged in the Action and that it was prepared to vigorously defend all aspects

5 of the Action. Nonetheless, having conducted an investigation of the facts, analyzed

6 the relevant legal issues, and taken into account the uncertainty and risks inherent in

7 any litigation, 7-Eleven has concluded that further defense of the Action would be

8 protracted, burdensome, and expensive and that as such, it is desirable and beneficial

9 to fully and finally settle and resolve the Action in the manner and upon the terms

10 and conditions set forth in this Agreement.

11 L. This Agreement therefore is a compromise of disputed rights and

12 remedies between the Parties, and the Parties acknowledge and agree it represents a

13 fair and reasonable resolution of disputes, claims, and defenses for all concerned.

14 This Agreement, any related documents, and any associated negotiations may not be

15 construed as, or deemed to be evidence of, or an admission or concession of, liability

16 or wrongdoing on the part of 7-Eleven or any of the Released Parties (defined

17 below) with respect to any claim of any fault, liability, wrongdoing, or damage

18 whatsoever.

19 M. It is understood and agreed that this Agreement represents a full and

20 final resolution of all claims, at law or in equity, whether known or unknown, that

21 relate to, are based on, or arise out of the facts, allegations, claims, causes of action,

22 transaction or series of transactions, or damages alleged or that were or could have

23 been brought in the Action.

24 N. Plaintiff Munoz believes that the claims asserted in the Action against 7-

25 Eleven on behalf of himself and the certified Class have merit and that he and the

26 Class would have ultimately been successful in prevailing on the merits.

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1 Nonetheless, Plaintiff Munoz and Class Counsel recognize and acknowledge that 7-

2 Eleven has raised factual and legal defenses that present a risk that Plaintiff Munoz

3 and the Class may not prevail. Plaintiff and Class Counsel have also taken into

4 account the uncertain outcome and risks of any litigation, especially in complex

5 actions, as well as the difficulties, delays, and expenses inherent in such litigation.

6 Therefore, Plaintiff believes that it is desirable that the Released Claims be fully and

7 finally compromised, settled and resolved, with prejudice, and be barred pursuant to

8 the terms set forth in this Agreement.

9 0. Based on their evaluation, Class Counsel have concluded that the terms

10 and conditions of this Agreement are fair, reasonable, and adequate to the Class and

11 that it is in the best interests of the Class to settle the claims raised in the Action

12 pursuant to the terms and provisions of this Agreement.

13 P. The Parties agree that the Action has been resolved in good faith, after

14 significant arm's-length bargaining, presided over by a neutral and respected

15 mediator, and that the settlement reflected in this Agreement confers substantial

16 benefits upon each of the Parties.

17 Q. Accordingly, to avoid the costs of trial and the exigencies of continued

18 litigation and to settle and dispose of, fully and completely and forever, the Released

19 Claims and any and all claims and causes of action asserted in the Action, subject to

20 final approval of the Court after a fairness hearing or hearings as provided for below,

21 and that upon final approval of this Agreement by the Court and fulfillment of each

22 Party's obligations the Court will enter a final order dismissing this Action with

23 prejudice.

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1 SETTLEMENT AGREEMENT

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1. DEFINITIONS

In addition to terms defined throughout this Agreement and in any

schedule or exhibits, the following terms shall have the meaning set forth below and

shall be deemed defined, for purposes of this Agreement only, as follows:

1.1 "Action" means this lawsuit, which is captioned Munoz v. 7-Eleven,

Inc., 2: 18-cv-03893-RGK-AGR (C.D. Cal.). 8

1.2 "Approved Claim" means a Claim that meets all requirements 9

expressly set forth in this Agreement and approved by the Settlement 10

11 Administrator that also meets the following requirements: (a) the Claim is

submitted on a timely basis in accordance with the directions on the Claim Form 12

and the provisions of this Agreement, (b) the Claim is fully and truthfully 13

completed and executed by a Class Member and provides all of the information 14

requested on the Claim Form, (c) the Claim is signed by the Class Member, 15

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subject to the penalties of perjury, and ( d) the Claim Form is verified by the

Settlement Administrator as being on the Class List and not a duplicate or

otherwise invalid claim, pursuant to Section 2 of this Agreement.

1.3 "Claim" means a written claim on the approved "Claim Form"

submitted by a Class Member to the Settlement Administrator requesting to

participate in and receive a benefit under the terms of this Settlement Agreement.

1.4 "Claimant Payments" mean the amounts due to each Class Member

who timely files an Approved Claim equal to the Class Member's share of the Net

Settlement Fund.

1.5 "Claims Deadline" means the date by which all Claim Forms must 25

be postmarked or received by the Settlement Administrator in order to be 26

considered timely. The Claims Deadline shall be a date no later than fourteen (14) 27

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1 days prior to the deadline for Class Counsel and Plaintiff to file a Motion for Final

2 Approval. The Claims Deadline shall be clearly set forth in the Preliminary

3 Approval Order and on the Notice and the Claim Form.

4 1.6 "Claim Form" means the forms drafted by Class Counsel and

5 Defendant, subject to the Court's approval, which, to recover a portion of the

6 Settlement, each Class Member must complete in full, sign, and timely mail to the

7 Settlement Administrator. The Claim Form will be mailed to each Class Member

8 with the notice and will be made available in paper format upon request to the

9 Settlement Administrator or to Class Counsel.

10 1. 7 "Class" or "Settlement Class" means all Persons who fall into the

11 definition of either class certified by the Court in its Order granting Class

12 Certification of October 18, 2018 (dkt. 43), which for convenience were defined as

13 follows:

14 Disclosure Class: All persons in the United States who (1) from a date [two

15 years] prior to the filing of this initial complaint in this action to the date

16 notice is sent to the Disclosure Class; (2) applied for employment with

17 Defendant; (3) about whom Defendant procured a consumer repot; and (4)

18 who were provided the same for FCRA disclosure and authorization as the

19 disclosure and authorization form that Defendant provided to Plaintiff.

20 California Subclass: All members of the Disclosure Class who reside in

21 California.

22 1.8 "Class Counsel" means Steven Woodrow and Patrick Peluso of

23 Woodrow & Peluso, LLC.

24 1.9 "Class List" means the list of Persons identified by 7-Eleven to be

25 provided to the Settlement Administrator who are members of the Class, which 7-

26 Eleven represents it used its best efforts to compile.

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1 1.10 "Class Member" or "Settlement Class Member" means a Person is

2 a member of the Class (including the proposed Class Representative) who has not

3 submitted a valid request for exclusion. 7-Eleven reasonably believes that the total

4 estimated size of the Class is comprised of approximately 59,920 Persons.

5 1.11 "Class Representative" or "Named Plaintiff' means Plaintiff

6 Edwardo Munoz, subject to the approval of the Court.

7 1.12 "Court" means the United States District Court for the Central

8 District of California.

9 1.13 "Cy Pres Designees" means the Education Fund of the National

10 Association of Consumer Advocates. Should the Court not approve the Education

11 Fund of the National Association of Consumer Advocates as a cy pres recipient,

12 the Cy Pres Recipient shall mean any other such organization that the Court deems

13 appropriate.

14 1.14 "Defendant" or "7-Eleven" means 7-Eleven, Inc.

15 1.15 "Defense Counsel" or "7-Eleven's Counsel" means defense

16 counsel, Julie Trotter, Delavan Dickson, and Kent Christensen of Call & Jensen.

17 1.16 "Effective Date" means one (1) business day after which all of the

18 events and conditions specified in Section 9 .1 have occurred or have been met.

19 1.17 "Fair Credit Reporting Act" or "FCRA" or "the Act" means and

20 refers to the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.

21 1.18 "Fee Award" means the amount of reasonable attorneys' fees and

22 reimbursement of expenses, if any, awarded by this or any other Court to Class

23 Counsel for their work pursuing this Action which Defendant will pay from the

24 Settlement Fund.

25 1.19 "Final" means one business day following the latest of the following

26 events: (i) the date upon which the time expires for filing or noticing any appeal of

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1 the Court's Final Order approving this Settlement Agreement; (ii) if there is an

2 appeal or appeals, other than an appeal or appeals solely with respect to the Fee

3 Award, the date of completion, in a manner that finally affirms and leaves in place

4 the Final Order without any material modification, of all proceedings arising out

5 of the appeal or appeals (including, but not limited to, the expiration of all

6 deadlines for motions for reconsideration or petitions for review or certiorari, all

7 proceedings ordered on remand, and all proceedings arising out of any subsequent

8 appeal or appeals following decisions on remand); or (iii) the date of final

9 dismissal of any appeal or the final dismissal of any proceeding on certiorari.

10 1.20 "Final Approval Hearing" means the fairness hearing under Rule

11 23( e) during which the Parties will ask the Court to enter the Final Order

12 approving the Settlement Agreement, the incentive award to the Class

13 Representative, and the Fee Award, to be scheduled in the Preliminary Approval

14 Order and set forth in both the Short Form Notice and Long Form Notice.

15 1.21 "Final Approval Order and Judgment" means the order in which

16 the Court grants final approval of this Settlement Agreement, authorizes the entry

1 7 of a final judgment, and dismisses the Action with prejudice.

18 1.22 "Funding Date" means the date by which 7-Eleven must forward to

19 the Settlement Administrator by wire the sum of the balance remaining between

20 the Initial Deposit and the Settlement Fund. The Funding Date shall be no later

21 than fourteen (14) days following the date the Final Approval Order and Judgment

22 becomes Final.

23 1.23 "Incentive Award" means the amount, if any, approved by the Court

24 as a payment to the Class Representative in recognition of the Class

25 Representative's time, effort, and exposure on behalf of the Class Members.

26 1.24 "Judgment" means the Judgment entered to by the Court

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1 incorporating the terms of this Settlement Agreement as approved in the Final

2 Order.

3 1.25 "Long Form Notice" means traditional "long form" notice to be

4 made available on the Settlement Website, describing the terms of this Settlement

5 Agreement and containing information on how to file a claim, opt-out of the

6 Settlement Class, or object, and which will be made available in accordance with

7 Section 4 of this Settlement Agreement, substantially in the form of Exhibit A

8 hereto.

9 1.26 "Nationwide" means the fifty (50) states of the United States of

10 America and its territories or possessions that are subject to the FCRA or any

11 claims asserted in the Action.

12 1.27 "Net Settlement Fund" defined and calculated as the total

13 Settlement Fund (one million nine hundred seventy two-thousand and five

14 hundred dollars, $1,972,500 USD) less the sum of all Settlement Administration

15 Costs, any Incentive Award to the Settlement Class Representative, and any Fee

16 Award as approved by the Court respectively).

17 1.28 "Notice Date" means the date by which direct-mail notice under the

18 Notice Plan set forth in Section 4 has been sent, which shall be a date no later than

19 twenty one (21) days after entry of the Preliminary Approval Order.

20 1.29 "Notice Plan" means the proposed plan developed by the Settlement

21 Administrator and approved by the Parties for disseminating notice to members of

22 the Class of the proposed Settlement Agreement and of the Final Approval

23 Hearing.

24 1.30 "Objection/Exclusion Deadline" means the date by which a written

25 objection to this Settlement Agreement or a request for exclusion by a Person

26 within the Class must be postmarked or filed with the Court, which shall be

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1 designated as a date no earlier than forty-five ( 45) days after the Notice Date and

2 at least fourteen (14) days after papers supporting the Fee Award are filed with the

3 Court and made available on the Settlement Website.

4 1.31 "Parties" or "Settling Parties" means Plaintiff Edwardo Munoz

5 and Defendant 7-Eleven.

6 1.32 "Person" means any individual or any entity including, without

7 limitation, a corporation, partnership, limited partnership, limited liability

8 partnership, limited liability company, association, joint stock company, estate,

9 legal representative, trust, unincorporated association, and any other business or

10 legal entity and their respective predecessors, successors, representatives, and

11 assigns.

12 1.33 "Plaintiff'' means the Named Plaintiff Edwardo Munoz.

13 1.34 "Preliminary Approval" means the Court's preliminary approval of

14 the Settlement Agreement and approval of the form of the Notice and of the

15 Notice Plan.

16 1.35 "Preliminary Approval Order" means the Court's order

1 7 preliminarily approving the Settlement Agreement, confirming the prior

18 certification of the Class, and directing notice of the Settlement to the Class.

19 1.36 "Released Claims" means any and all actual, potential, filed, known

20 or unknown, fixed or contingent, claimed or unclaimed, suspected or unsuspected,

21 claims, demands, liabilities, rights, causes of action, contracts or agreements,

22 extra-contractual claims, punitive, treble, exemplary, statutory, or multiplied

23 damages, expenses, costs, attorneys' fees, fines, penalties, awards, interest

24 (including pre-judgment interest), and all other obligations, whether in law or in

25 equity, accrued or unaccrued, direct, individual or representative, of every nature

26 and description whatsoever, whether based on the FCRA or any other federal,

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1 state, local, statutory or comm.on law or any other law, rule or regulation,

2 including the law of any jurisdiction outside the United States (including both

3 direct, vicarious, and derivative claims), and whether known or unknown, against

4 the Released Parties or any of them. that relate to, are based on, could have been

5 brought or arise out of the facts, allegations, claims, causes of action, transaction

6 or series of transactions, or dam.ages alleged in the First Am.ended Com.plaint.

7 1.37 "Released Parties" means Defendant 7-Eleven and all current and

8 former, direct and indirect, parents, subsidiaries, brother-sister companies, and all

9 other affiliates and related partnerships, joint ventures, or other entities, and, with

10 respect to each of them., their predecessors and successors; and, with respect to

11 each such entity, all of its past, present, and future employees, officers, directors,

12 stockholders, owners, insurers, representatives, assigns, attorneys, agents, insurers,

13 employee benefit programs ( and the trustees, administrators, fiduciaries, and

14 insurers of such programs), and any other persons acting by, through, under or in

15 concert with any of the persons or entities listed in this section, and their

16 successors.

1 7 1.38 "Releasing Parties" means Plaintiff Munoz and those Class

18 Members who do not timely opt out of the Class ( whether or not such Class

19 Members submit claims).

20 1.39 "Settlement Administration Expenses" means the expenses

21 incurred by the Settlement Administrator in providing Notice, maintaining the

22 Settlement Website, processing claims, mailing checks for Approved Claims, as

23 well as any costs incurred in sending the Class Action Fairness Act notices

24 described in Section 4.2(g) below. 7-Eleven will pay all Settlement Administration

25 Expenses incurred in connection with this Agreement.

26 1.40 "Settlement Administrator" means the third-party administrator

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1 selected by the Parties and approved by the Court to oversee the distribution of

2 Notice and to process and pay Approved Claims to the Class Members, in

3 accordance with the terms and conditions set forth in this Agreement, and any

4 other amounts to any other Persons required under this Agreement.

5 1.41 "Settlement Agreement" "Settlement" or "Agreement" means this

6 Agreement and the settlement contemplated hereunder.

7 1.42 "Settlement Checks" mean the checks to be issued by the Settlement

8 Administrator from the Settlement Fund in the amount of the Claimant Payments.

9 Settlement Checks shall be issued no later than twenty one (21) days following the

10 Funding Date.

11 1.43 "Settlement Fund" means the total aggregate common fund that 7-

12 Eleven will be obligated to pay by operation of this Settlement Agreement if it

13 receives final approval from the Court and the Judgment becomes Final. The

14 Settlement Fund equals one-million, nine-hundred seventy-two thousand, five-

15 hundred dollars ($1,972,500 USD) and constitutes 7-Eleven's exclusive and total

16 payment obligation under this Settlement Agreement to settle the Action in full.

1 7 The Settlement Fund will be used to pay: (a) the Settlement Checks to Settlement

18 Class Members who submit Approved Claims; (b) any Fee Award; ( c) any

19 Incentive A ward approved by the Court; and ( d) all Settlement Administration

20 Costs. The Settlement Fund represents the total extent of 7-Eleven's monetary

21 obligations under this Agreement. The Settlement Fund shall be maintained in an

22 interest-bearing account if possible at a bank chosen by the Settlement

23 Administrator ("the Settlement Bank Account"). The Settlement Administrator

24 shall establish the Settlement Bank Account at a bank that is insured by the

25 Federal Deposit Insurance Corporation and that has total assets of at least five-

26 hundred million dollars ($500,000,000 USD) and a short-term deposit rating of at

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1 least P-1 (Moody's) or A-1 (Standard & Poor's). Any costs associated with

2 opening and/or maintaining the bank account to hold the Settlement Fund shall be

3 deducted from the Settlement Fund. The Settlement Administrator shall be

4 responsible for all tax filings with respect to any earnings on the Settlement Fund

5 and the payment of all taxes that may be due on such earnings.

6 1.44 "Settlement Website" means the Internet website to be established,

7 administered and maintained by the Settlement Administrator as set forth in

8 Section 4 of this Settlement Agreement which shall contain the Long Form

9 Notice, important dates and deadlines, and key Settlement documents and orders.

10 The Settlement Website will also allow Settlement Class Members to file Claim

11 Forms electronically.

12 1.45 "Short Form Notice" means the notice of this proposed Class

13 Action Settlement and Final Approval Hearing, which will be delivered via direct-

14 mail notice to the Class Members in substantially the manner set forth in this

15 Agreement, consistent with the requirements of due process and Rule 23, as

16 expressly provided in this Agreement and as substantially in the form attached as

17 Exhibit B.

18 2. CLASS BENEFITS

19 2.1 Payments to Settlement Class Members. No later than the Funding

20 Date, 7-Eleven shall deposit into the Settlement Bank Account the Settlement Fund.

21 7-Eleven shall have no payment obligations under this Settlement other than the

22 Settlement Fund. In the event that this Settlement Agreement terminates or is not

23 approved, any advances paid to the Settlement Administrator by 7-Eleven that have

24 not been spent, and are not required for amounts that are due and payable for

25 reasonable and identified notice and administration costs already incurred, shall,

26

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1 within ten (10) business days, be returned by the Settlement Administrator to 7-

2 Eleven by payment to an account designated by 7-Eleven.

3 a) To facilitate the notice and claims administration process, 7-

4 Eleven and its counsel will provide to the Settlement Administrator, in an

5 electronically searchable and readable format, the Class List. Any information on the

6 Class List shall be provided solely for the purpose of providing notice to the Class

7 and informing them about their rights further to this Settlement, shall be kept in strict

8 confidence and, subject to a Stipulated Protective Order, shall not be disclosed to any

9 third party other than the parties to this Agreement and their counsel if necessary to

10 effectuate the terms of the Agreement or the administration process, shall be used for

11 no other cases, and shall be used for no other purpose.

12 b) Subject to the terms and conditions of this Agreement, Class

13 Members shall qualify for payment from the Settlement Fund if they submit a Claim

14 Form before the Claims Deadline that is an Approved Claim and they are on the

15 Class List. Only one claim per person shall be permitted.

16 c) Each Class Member who submits an Approved Claim shall be

17 eligible to receive one (1) Claimant Payment of equal value, which is to be

18 determined by dividing the Net Settlement Fund by the total number of Approved

19 Claims. However, in no event shall any Class Member receive a Claimant Payment

20 greater than five-hundred fifty dollars ($550), which shall be the maximum payout.

21 If the $550 cap is triggered, any remaining funds from the Net Settlement Fund shall

22 be distributed evenly among the Cy Pres designees approved by the Court.

23 d) Settlement Checks for the Claimant Payments shall be valid for

24 ninety (90) days after issuance. Settlement Checks shall be issued to Class members

25 who filed Approved Claims within twenty-one (21) days of the Funding Date. Any

26 funds associated with Settlement Checks not cashed by Settlement Class Members

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1 within that time will remain in the Settlement Fund unless such Settlement Check is

2 returned as undeliverable to the Settlement Administrator within the 90-day period

3 after issuance ("Returned Settlement Checks"). With respect to Returned Settlement

4 Checks, the Settlement Administrator will make one ( 1) reasonable attempt at re-

5 mailing to the address on file or to any updated address determined by using the

6 national change of address registry. Re-mailed checks shall be valid for ninety (90)

7 days after issuance of the re-mailing.

8 e) Any amounts remaining in the Settlement Fund after payment of

9 all Claimant Payments, Settlement Administration Costs, Fee A ward and Incentive

10 A ward will be paid to the Cy Pres Recipients, as approved by the Court.

11 f) Notwithstanding any judgment, principle, or statute, there shall

12 be no interest accrued, owing, or paid by 7-Eleven on the Claimant Payments, or on

13 the Settlement Fund, or on any other benefit available ( or potentially available)

14 under this Agreement.

15 2.2 Prospective Relief. The Parties and Settlement Class agree that the

16 language below satisfies the requirements of 15 U.S.C. § 168lb(b)(2)(A)(i), which

17 is the content in 7-Eleven's current background check disclosure form:

18

19

20

21

22

23

24

25

26

27

28

CONSUMER REPORT DISCLOSURE AND AUTHORIZATION

7-Eleven, Inc. may obtain, where permitted, one or more "consumer reports" as that term is defined in the Fair Credit Reporting Act ("FCRA") to use for employment purposes in connection with your employment, or your application for employment (i.e., for the purpose of considering you for employment) with 7-Eleven, Inc. Consumer reports may contain information concerning your criminal history, driving history, education history, employment history, records of military service, and other background information where permissible by law.

By affixing your electronic signature below, you authorize 7-Eleven, Inc. to obtain, where permitted, one or more consumer reports in connection with your employment or application for employment with 7-Eleven, Inc.

First Name:

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1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

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20

21

22

23

24

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26 27

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Full Middle Name: Last Name: Address: Email Address: Date of Birth: Social Security Number:

This is an electronic signature and is given in accordance with U.S. federal regulations governing the legal and binding effectiveness of electronic signatures. By providing this electronic signature, you are acknowledging that you have carefully read this notice and authorization fonn, and understand it.

2.3 Payments Not Wages. The Parties agree that payments under this

Agreement do not constitute wages, these payments are not subject to FICA or

other withholding, and each Settlement Class Member who is eligible for and

receives a payment under this Agreement will be solely responsible for payment

of any taxes on the amount received.

3. RELEASES

3.1 Released Claims. The obligations incurred under this Settlement

Agreement shall constitute a full and final disposition, settlement, and dismissal of

the Action and of any and all Released Claims by the Releasing Parties against all

Released Parties and each of them.

3.2 Release. Upon the Effective Date, the Releasing Parties and each of

them, jointly and severally, shall be deemed to have, and by operation of the Final

Order, shall have fully, finally, and forever released, relinquished, waived, and

discharged with prejudice all Released Claims against the Released Parties and

each of them.

3.3 All Claims, Known and Unknown, Extinguished. In addition, upon

the Effective Date the Class Representative, on behalf of himself and his present,

former, and future heirs, executors, administrators, representatives, agents,

attorneys, partners, successors, predecessors-in-interest, and assigns of each of

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1 them, shall be deemed to have released any and all claims, known or unknown,

2 against 7-Eleven and the Released Parties that were or could have been brought

3 against 7-Eleven and the Released Parties either in the Action or in any separate

4 proceeding in any court of competent jurisdiction. 7-Eleven shall be able to raise a

5 defense in any subsequent action alleging Released Claims that payments to any

6 Person based on an Approved Claim operates as an accord and satisfaction and a

7 release and waiver as to any claims such Persons may otherwise have arising

8 from, or which could have been asserted in, the Action.

9 3.4 California Section 1542. For the Released Claims, each Settlement

10 Class Member who applied for or worked in the State of California waives all

11 rights and benefits afforded by California Code Section 1542 and does so with full

12 understanding of the significance of that waiver. Section 1542 states: "A general

13 release does not extend to claims that the creditor or releasing party does not

14 know or suspect to exist in his or her favor at the time of executing the

15 release and that, if known by him or her, would have materially affected his

16 or her settlement with the debtor or released party." The Class Representative

1 7 and Settlement Class Members acknowledge that they may discover facts in

18 addition to or different from those that they now know or believe to be true with

19 respect to the subject matter of this release, but that it is their intention to finally

20 and forever settle and release the Released Claims, notwithstanding any unknown

21 claims they may have, as that term is defined in this Agreement.

22 4. NOTICE, EXCLUSIONS & OBJECTIONS

23

24

4.1 Notice Plan

a) The Parties agree to provide the best notice that is practicable

25 under the circumstances, including individual notice to Persons in the Class who

26 may be identified through reasonable efforts.

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1 b) 7-Eleven shall, within fourteen (14) days of entry of the

2 Preliminary Approval Order, provide the Settlement Administrator with the Class

3 List. The Settlement Administrator shall use the Class List to take all steps

4 reasonably necessary, including reverse phone look-ups of the phone numbers, to

5 identify the owner of the numbers in the Class List at the relevant time together

6 with such Persons' last known mailing address and email address, where

7 available. After identifying mailing addresses through this process, the Settlement

8 Administrator shall, by using the National Change of Address ("NCOA") database

9 maintained by the United States Postal Service ("Postal Service"), obtain updated

10 m9-iling addresses, if available.

11 c) Within thirty (30) days following entry of the Preliminary

12 Approval Order, the Settlement Administrator shall send the Short Form Notice to

13 each Class Member via first class mail for those Class Members for whom a

14 mailing address has been obtained. Wherever an email address has been located,

15 the Settlement Administrator will also email the Short Form Notice, in a form

16 appropriate for email, to the email address. Neither the Parties nor the Settlement

17 Class Administrator shall have any obligation to mail or email the Short Form

18 Notice to any Settlement Class Member for whom no mailing address or email

19 address could be located following the process set forth in 4.3.b above. If and to

20 the extent deemed necessary by the Settlement Administrator, the last known

21 address of Persons in the Class will be subject to confirmation or updating as

22 follows: (i) the Settlement Administrator may conduct a reasonable search to

23 locate an updated address for any Person in the Class whose Short Form Notice is

24 returned as undeliverable; (ii) the Settlement Administrator shall update addresses

25 based on any forwarding information received from the United States Post Office;

26 and (iii) the Settlement Administrator shall update addresses based on information

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1 it receives and through any requests received from Persons in the Class.

2 d) If any Short Form Notice sent under this Section is returned by

3 the Postal Service as undeliverable, the Settlement Administrator shall re-mail the

4 Short Form Notice once to the forwarding address, if any, provided by the Postal

5 Service on the face of the returned mail. Otherwise, the Settlement Administrator

6 shall attempt to send notice via email. Other than as set forth in this paragraph,

7 neither the Parties nor the Settlement Administrator shall have any other

8 obligation to re-mail the Short Form Notice.

9 e) The Settlement Administrator shall have discretion to format

10 the Short Form Notice and Claim Form in a reasonable manner to minimize

11 mailing or administrative costs. Before the Short Form Notices are mailed, Class

12 Counsel and Counsel for Defendant shall first be provided with a proof copy of

13 any and all notices (including what the items will look like in their final form), and

14 shall have the right to inspect the same for compliance with the Settlement

15 Agreement and with any orders by the Court.

16 f) No later than twenty-one (21) days following the entry of the

17 Preliminary Approval Order, the Settlement Administrator shall cause the Long

18 Form Notice, a downloadable Claim Form that may be printed and mailed to the

19 Settlement Administrator, an electronic version of the Claim Form that may be

20 completed and submitted electronically, this Settlement Agreement and Exhibits,

21 the FAC, the Preliminary Approval Order, and any other relevant documents to be

22 made available on a dedicated Settlement Website, the website name/URL for

23 which is to be agreed upon by the Parties, to be administered by the Settlement

24 Administrator. When available, the Settlement Administrator shall make available

25 on the Settlement Website Class Counsel's application for a Fee Award and any

26 motion seeking approval of any Incentive Award as well as the Final Approval

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1 Order. Any other content proposed to be included or displayed on the Settlement

2 Website shall be approved in advance by Class Counsel and Defendant's Counsel.

3 Such approvals shall not be unreasonably withheld.

4 g) Within thirty (30) days after entry of the Preliminary Approval

5 Order, the Settlement Administrator shall set up a toll-free telephone number that

6 will provide automated information about the settlement, the Class Members'

7 rights, important deadlines, and instructions as to how Class Members may

8 request and obtain hard-copy settlement documents. That telephone number shall

9 be maintained until the Claims Deadline. After that time, and through the date the

10 Final Approval Order is entered, a recording will advise any caller to the toll free

11 telephone number that the Claims Deadline has passed and that details regarding

12 the settlement may be reviewed on the Settlement Website.

13 h) 7-Eleven and the Settlement Administrator shall be responsible

14 for timely compliance with any notice required by the Class Action Fairness Act

15 ("CAF A"), 28 U.S.C. § 1715. 7-Eleven shall provide proof of such compliance by

16 filing a confirmation declaration with the Court at least fourteen (14) days prior to

1 7 the Final Approval Hearing.

18 i) Claim Forms shall be returned or submitted to the Settlement

19 Administrator via U.S. Mail or via submission through the Settlement Website, by

20 the Claims Deadline or be forever barred.

21 4.2 Right to Opt Out, Comment, or Object. The Notice shall advise the

22 Class Members of their rights, including the right to be excluded from, comment

23 upon, or object to the Settlement Agreement or its terms and conditions. The

24 Notice shall specify that: (i) any objection to the Settlement Agreement and any

25 papers submitted in support of an objection shall be considered by the Court at the

26 Final Approval Hearing only if, on or before the Objection/Exclusion Deadline

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1 approved by the Court and specified in the Notice, the Person making an objection

2 files notice of his or her intention to do so and at the same time files copies of such

3 papers he or she proposes to submit at the Final Approval Hearing with the Clerk

4 of the Court and sends copies of such papers by mail, hand, or overnight delivery

5 service to Class Counsel and 7-Eleven's Counsel, and (ii) that any objection made

6 by a Class Member represented by counsel must be filed through the Court's

7 CM/ECF system.

8 4.3 Objections. Any member of the Class who intends to object to this

9 Agreement must include in the objection his/her name and address; include all

10 arguments, citations, and evidence supporting the objection (including copies of

11 any documents relied on); state that he or she is a Class Member; and provide a

12 statement indicating whether the objector intends to appear at the Final Approval

13 Hearing and, if so, whether the appearance will be with or without counsel. Any

14 Class Member who fails to timely file a written objection with the Court and

15 notice of his or her intent to appear at the Final Approval Hearing in accordance

16 with the terms of this section and as detailed in this Notice, and at the same time

1 7 provide copies to designated counsel for the Parties, shall not be permitted to

18 object to this Agreement at the Final Approval Hearing, and shall be foreclosed

19 from seeking any review of this Agreement by appeal or other means and shall be

20 deemed to have waived his, her, or its objections and be forever barred from

21 making any such objections in the Action or any other action or proceeding. To be

22 valid, the objection must be filed with the Court and delivered or postmarked and

23 sent via mail to Class Counsel and 7-Eleven's Counsel on or before the

24 Objection/Exclusion Deadline approved by the Court and specified in the Short

25 Form and Long Form Notice.

26 4.4 Exclusion. A member of the Class may request to be excluded from

27

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1 the Class in writing by a request postmarked on or before the Objection/Exclusion

2 Deadline approved by the Court and specified on the Notice. To exercise the right

3 to be excluded, a member of the Class must timely send a written request for

4 exclusion to the Settlement Administrator providing his/her name and address, the

5 name and number of the case, and a statement that such Person intends to be

6 excluded from the Settlement. A request to be excluded that does not include all of

7 this information, that is sent to an address other than that designated in the Notice,

8 or that is not postmarked within the time specified shall be invalid, and the

9 Person(s) serving such a request shall be a member(s) of the Class and shall be

10 bound as Class Members by the Agreement, if approved. Any Class Member who

11 elects to be excluded shall not: (i) be bound by any orders of the Final Order; (ii)

12 be entitled to relief under this Settlement Agreement; (iii) gain any rights by virtue

13 of this Agreement; or (iv) be entitled to object to any aspect of this Agreement.

14 The request for exclusion must be personally signed by the Person requesting

15 exclusion. So-called "mass" or "class" opt-outs shall not be allowed.

16 4.5 Settlement Administration Costs are payable from the Settlement

1 7 Fund, as approved by the Court.

18 4.6 Binding Settlement. Any Class Member who does not, in

19 accordance with the terms and conditions of this Agreement, seek timely

20 exclusion from the Class or timely file an Approved Claim shall be deemed a

21 Class Member bound by this Agreement, but shall not be entitled to receive any

22 cash award or any other benefits pursuant to this Agreement but will otherwise be

23 bound together with all respective Class Members by all of the terms of this

24 Agreement, including the terms of the Final Order to be entered in the Action and

25 Releases provided for in the Agreement, and will thus be barred from bringing any

26 action against any of the Released Parties concerning the Released Claims.

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1 5. SETTLEMENT ADMINISTRATION

2 5.1 Claims Process. The Settlement Administrator shall, under the

3 Court's supervision, administer the relief provided by this Settlement Agreement

4 by processing Claim Forms in a rational, responsive, cost-effective, and timely

5 manner. The Settlement Administrator shall maintain reasonably detailed records

6 of its activities under this Agreement. The Settlement Administrator shall ensure

7 that all such records will be made available for inspection and copying to Class

8 Counsel and 7-Eleven's Counsel upon request. The Settlement Administrator shall

9 also provide reports and other information to the Court as the Court may require.

10 The Settlement Administrator shall provide Class Counsel and 7-Eleven's Counsel

11 with information concerning the Notice as well as the administration and

12 implementation of the Settlement Agreement. Should the Court request, the

13 Parties, in conjunction with the Settlement Administrator, shall submit a timely

14 report to the Court summarizing the work performed by the Settlement

15 Administrator, including a report of all amounts from the Settlement Fund paid to

16 Settlement Class Members on account of Approved Claims. Without limiting the

17 foregoing, the Settlement Administrator shall:

18 a) Forward to 7-Eleven's Counsel and Class Counsel, all

19 original ( or suitable copies of) documents and other materials received in

20 connection with the administration of the Settlement, within fifteen (15) days after

21 the date on which all Claim Forms have been finally approved or disallowed in

22 accordance with the terms of this Agreement;

23 b) Receive requests to be excluded from the Class and other

24 requests from Class Members and promptly provide to Class Counsel and 7-

25 Eleven's Counsel copies upon receipt. If the Settlement Administrator receives

26 any requests for exclusion or other requests from Class Members after the

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1 deadline for the submission of such forms and requests, the Settlement

2 Administrator shall promptly provide copies thereof to Class Counsel and 7-

3 Eleven's Counsel.

4 c) Provide weekly or other periodic reports to Class Counsel

5 and 7-Eleven's Counsel, including without limitation, reports regarding the

6 number of Claim Forms received and the amount of the payments sought, the

7 number approved by the Settlement Administrator, and the categorization and

8 description of Claim Forms rejected, in whole or in part, by the Settlement

9 Administrator; and

10 d) Make available for inspection and copying by Class Counsel

11 and/ or 7-Eleven' s Counsel, the Claim Forms and any supporting documentation

12 received by the Settlement Administrator at any time upon reasonable notice.

13 5.2 Valid Claim Forms. The Settlement Administrator shall reject a

14 Claim Form, or any part of a Claim for a payment with due regard for 7-Eleven

15 records to verify the submissions of any claim presented, including without

16 limitation, where the name provided on the Claim Form does not appear on the

17 Class List or cannot be validated as having been considered for employment by 7-

18 Eleven. In addition, the Settlement Administrator shall be obliged to employ

19 reasonable procedures to screen claims for abuse or fraud and deny Claim Forms

20 where there is evidence of abuse or fraud. The Settlement Administrator shall

21 determine whether a Claim Form submitted by a Class Member is an Approved

22 Claim and shall reject Claim Forms that fail to comply with the instructions or the

23 terms of this Agreement, after giving the claimant a reasonable opportunity to

24 provide any requested missing information, but in no event shall any Class

25 Member have more than thirty (30) days after being noticed by the Settlement

26 Administrator of any question or deficiency in the submitted Claim Form to

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1 answer the question or cure such deficiency.

2 5.3 Challenges to Validity of Claim Form. Both Class Counsel and 7-

3 Eleven, either individually or jointly, shall have the right to challenge the

4 acceptance or rejection of a Claim Form submitted by a Class Member. The

5 Settlement Administrator shall be bound by any agreed decisions of Class Counsel

6 and 7-Eleven's Counsel as to the validity of any disputed Claim Form. To the

7 extent Class Counsel and 7-Eleven are not able to agree on the disposition of a

8 challenge, the Parties shall present such challenges to the mediator, Michael

9 Dickstein, for binding, non-appealable decision as to such challenge, subject to

10 any confidentiality provisions as necessary to assure the privacy of the person

11 whose claim is challenged.

12 5.4 Administrator's Request for Information. In the exercise of its

13 duties outlined in this Agreement, the Settlement Administrator shall have the

14 right to reasonably request additional information from the Parties or any Class

15 Member.

16 5.5 Fairness Hearing. The Final Approval Hearing shall be no earlier

17 than forty-five (45) days after the Notice described in Section 4.1 is provided or

18 such other time as the Court shall set.

19 5.6 Confidentiality of Information. The Settlement Administrator and

20 the Parties each agree to keep all information received under Section 5 of this

21 Agreement-including the Class List and all personal information of the Class

22 obtained therefrom-confidential and may use it only for purposes of effectuating

23 this Agreement.

24 6. TERMINATION OR RESCISSION OF SETTLEMENT

25 6.1 Termination Events. Subject to Section 9 below, the Class

26 Representative, on behalf of the Class, or Defendant and each or any of them, shall

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1 have the right to terminate this Agreement by providing written notice of the

2 election to do so ("Termination Notice") to all other Parties within ten (10)

3 business days of any of the following events: (i) the Court's refusal to grant

4 Preliminary Approval of this Agreement in any material respect, including without

5 limitation the Court's refusal to approve the reversion of monies remaining in the

6 Settlement Fund to 7-Eleven; (ii) the Court's refusal to grant final approval of this

7 Agreement in any material respect; (iii) the Court's refusal to enter the Final Order

8 in this Action in any material respect; (iv) the date upon which the Final Order is

9 modified or reversed in any material respect by the Court of Appeals or the

10 Supreme Court; or (v) the date upon which the Alternate Order, as defined in

11 Section 9 .1 ( d) of this Agreement, is modified or reversed in any material respect

12 by the Court of Appeals or the Supreme Court.

13 6.2 Termination or Rescission by Defendant. Notwithstanding any

14 other provision contained herein to the contrary, Defendant shall have the right,

15 but not the obligation, to terminate and rescind this Agreement if over five ( 5)

16 percent of the Class files valid requests for exclusion from this Agreement. To

1 7 exercise this right, Defendant must provide written notice to Plaintiff no later than

18 fourteen (14) days following the Objection/Exclusion Deadline. If Defendant

19 terminates or rescinds this Agreement, then the Defendant's obligations under the

20 Agreement will cease to have any force and effect, the Agreement will be vacated,

21 canceled, and annulled, and the Parties will return to the status quo ante as if they

22 had not entered into the settlement. In addition, the settlement and all negotiations

23 and proceedings related to the settlement will be without prejudice of the rights of

24 the Parties, and evidence of the settlement, negotiations, and proceedings will be

25 inadmissible and will not be discoverable.

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1 ·7. 2

PRELIMINARY APPROVAL ORDER AND FINAL APPROVAL ORDER

3 7.1 Motion for Preliminary Approval. Promptly after the execution of

this Settlement Agreement, Class Counsel shall submit this Agreement together 4

with its Exhibits to the Court and shall move the Court for Preliminary Approval 5

of the settlement set forth in this Agreement and entry of a Preliminary Approval 6

Order, which order shall set a Final Approval Hearing date, the 7

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Objection/Exclusion deadline, the Claims Deadline, and approve the Notice and

Claim Form for dissemination in accordance with the Notice Plan, substantially in

the forms attached as Exhibits B and C.

7.2 Final Approval Hearing. At the time of the submission of this

Agreement to the Court as described above, Class Counsel shall request that, after 12

13 Notice is given, the Court hold a Final Approval Hearing and approve the

settlement of the Action as set forth in this Agreement. 14

15 7.3 Final Approval Order. After Notice is given, Class Counsel shall

request from the Court a Final Order. The Final Order will (among other things): 16

17 a) find that the Court has personal jurisdiction over all Class

Members and that the Court has subject matter jurisdiction to approve the 18

Agreement, including all attached exhibits; 19

20 21

b) approve the Agreement and the proposed settlement as fair,

reasonable and adequate as to, and in the best interests of, the Class Members;

direct the Parties and their counsel to implement and consummate the Agreement 22

23 according to its terms and provisions; and declare the Agreement to be binding on

all pending and future lawsuits or other proceedings maintained by or on behalf of 24

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Plaintiffs and the Releasing Parties;

c) find that the Notice and the Notice Plan implemented

pursuant to the Agreement (i) constitute the best practicable notice under the 27

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1 circumstances; (ii) constitute notice that is reasonably calculated, under the

2 circumstances, to apprise the Class of the pendency of the Action, their right to

3 object or exclude themselves from the proposed Agreement, and to appear at the

4 Final Approval Hearing; (iii) are reasonable and constitute due, adequate, and

5 sufficient notice to all persons entitled to receive notice; and (iv) meet all

6 applicable requirements of the Federal Rules of Civil Procedure, the Due Process

7 Clause of the United States Constitution, and the rules of the Court;

8 d) find that the Class Representative and Class Counsel

9 adequately represented the Class for purposes of entering into and implementing

10 the Agreement;

11 e) dismiss this Action (including all individual claims and class

12 action claims presented thereby) on the merits and with prejudice, without fees or

13 costs to any party except as provided in the Settlement Agreement;

14 f) incorporate the Release set forth above, make the Release

15 effective as of the Effective Date, and forever discharge the Released Parties as set

16 forth in this Agreement;

17 g) permanently bar and enjoin all Class Members who have not

18 been properly excluded from the Class from filing, commencing, prosecuting,

19 intervening in, or participating ( as class members or otherwise) in, any lawsuit or

20 other action in any jurisdiction based on the Released Claims;

21 h) authorize the Parties, without further approval from the

22 Court, to agree to and adopt such amendments, modifications and expansions of

23 the Settlement Agreement and its implementing documents (including all exhibits

24 to this Agreement) as (i) shall be consistent in all material respects with the Final

25 Order, or (ii) do not limit the rights of Class Members; and without affecting the

26 finality of the Final Order for purposes of appeal, retain jurisdiction as to all

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1 matters relating to administration, consummation, enforcement, and interpretation

2 of the Settlement Agreement and the Final Order, and for any other necessary

3 purpose; and

4 i) incorporate any other provisions, as the Court deems

5 necessary and just.

6 8. ATTORNEYS' FEES AND REIMBURSEMENT OF EXPENSES AND

7 CLASS REPRESENTATIVE INCENTIVE AWARD. 8 8.1 Attorneys' Fees and Costs. No later than fourteen (14) days before

9 the Objection Deadline, Class Counsel may make written application to the Court

10 for a Fee Award not to exceed, in the aggregate, one-third (33.33%) of the

11 Settlement Fund. The Parties agree that the Court ( and only the Court) shall

12 determine the final amount of the Fee A ward in this Action. Any Fee A ward shall

13 be paid out of the Settlement Fund.

14 8.2 Payment of Fees and Costs. Class Counsel shall, within seven (7)

15 days following the Funding Date, be paid the amount of attorneys' fees and

16 expenses approved by the Court. Any payment of the Fee A ward from the

1 7 Settlement Fund shall be paid by the Settlement Administrator via electronic

18 transfer to an account designated by Class Counsel providing necessary

19 information to the Settlement Administrator. Class Counsel agree and represent

20 that in no event shall Defendant collectively pay or be obligated to pay in excess

21 of the Fee Award determined by the Court for Class Counsel's attorneys' fees and

22 expenses.

23 8.3 Incentive Award for Class Representative. In addition to any

24 Approved Claim payment to which he may be entitled to under the Settlement

25 Agreement, and provided that he does so qualify for an Approved Claim, in

26 recognition of his efforts on behalf of the Class, the Class Representative shall,

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1 subject to the approval of the Court, be awarded an incentive award in the

2 aggregate amount to be determined by the Court upon written application to the

3 Court made no later than fourteen (14) days before the Objection Deadline. 7-

4 Eleven agrees that an incentive award of $5,000 is reasonable and that it shall not

5 oppose such award, directly or indirectly. This sum shall be paid in recognition of

6 the Plaintiffs time, exposure, and effort serving as the Class Representative in this

7 litigation. The Settlement Administrator shall pay said amount via check from the

8 Settlement Fund to the Class Representative, such check to be sent care of Class

9 Counsel, within seven (7) days after the Funding Date.

10 9. CONDITIONS OF SETTLEMENT, EFFECT OF DISAPPROVAL,

11 CANCELLATION, OR TERMINATION

12 9.1 Effective Date of Settlement. The Effective Date of this Settlement

13 Agreement shall not occur unless and until each of the following events occurs

14 and shall be the date upon which the last (in time) of the following events occurs:

15 a) This Agreement has been signed by Class Counsel, the Named

16 Plaintiff, 7-Eleven and 7-Eleven's Counsel;

1 7 b) The Court has entered the Preliminary Approval Order;

18 c) The Court has entered an order finally approving the

19 Agreement, following notice to the Class and a Final Approval Hearing, as

20 provided in the Federal Rules of Civil Procedure, and has entered the Final Order,

21 or an order substantially consistent with this Agreement; and

22 d) The Final Order has become Final, as defined above, or, in the

23 event that the Court enters a final order in a form other than that provided above

24 ("Alternate Order") and that has the consent of the Parties, such Alternate Order

25 becomes Final.

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1 in Section 9 .1 are not met, or in the event that this Agreement is not approved by

2 the Court, or the settlement set forth in this Agreement is terminated or fails to

3 become effective in accordance with its terms, then this Agreement shall be

4 canceled and terminated subject to Section 9.3 unless the Plaintiff and Defendant

5 mutually agree in writing to proceed with the Agreement. If any party to this

6 Agreement is in material breach of the terms of this Agreement, any other party,

7 provided that it is in substantial compliance with the terms of the Agreement, may

8 terminate this Agreement on notice to all of the Settling Parties. Notwithstanding

9 anything in this Agreement, the Parties agree that the Court's failure to approve, in

10 whole or in part, the attorneys' fees payment to Class Counsel set forth in Section

11 8.1 and 8.2 above shall not prevent the Agreement from becoming effective, nor

12 shall it be grounds for termination.

13 9.3 Status Quo Ante. If this Agreement is terminated or fails to become

14 effective for the reasons set forth in Sections 6.1, 6.2, 9.1 or 9.2 above, the Parties

15 shall be restored to their respective positions in the Action as of the date of the

16 signing of this Agreement with all claims or their defenses fully preserved. In such

17 event, any Final Order or other order entered by the Court in accordance with the

18 terms of this Agreement shall be treated as vacated, nunc pro tune, and the Parties

19 shall be returned to the status quo ante with respect to the Action as if they had

20 never entered into this Agreement, subject to reasonable extensions of time as to

21 any deadlines.

22 9.4 No Admission of Liability. Nothing in this Agreement or in any

23 other document related to this Settlement will be construed as or deemed an

24 admission of liability, culpability, negligence, reckless disregard, or wrongdoing

25 on the part of Defendant. Likewise, nothing in this Agreement or in any other

26 document related to this Settlement will be construed as or deemed an admission

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1 regarding the infirmity of any claim or legal argument or theory on the part of

2 Plaintiff. Each of the Parties has entered into this Agreement with the intention of

3 avoiding further disputes and litigation and the attendant inconvenience, expense,

4 and unpredictability.

5 10. MISCELLANEOUS PROVISIONS

6 10.1 Good Faith Efforts. The Parties: (i) acknowledge that it is their

7 intent to consummate this Settlement Agreement; and (ii) agree, subject to their

8 ethical, fiduciary, and legal obligations, to cooperate to the extent reasonably

9 necessary to effectuate and implement all terms and conditions of this Agreement

10 and to exercise their reasonable best efforts to accomplish the foregoing terms and

11 conditions of this Agreement. The Parties, Class Counsel, and 7-Eleven's Counsel

12 all agree to cooperate with one another in seeking Court approval of the

13 Preliminary Approval order, the Settlement Agreement, and the Final Order, and

14 promptly to agree upon and execute all such other documentation as may be

15 reasonably required to obtain final approval of the Agreement.

16 10.2 All Disputes Resolved. The Parties intend this Settlement Agreement

1 7 to be a final and complete resolution of all disputes between them with respect to

18 the Released Claims by the Releasing Parties and each or any of them, on the one

19 hand, against the Released Parties, and each or any of them, on the other hand.

20 Accordingly, the Parties agree not to assert in any forum that the Action was

21 brought by Plaintiff or defended by Defendant, or each or any of them, in bad faith

22 or without a reasonable basis.

23 10.3 Advice of Counsel. The Parties have relied upon the advice and

24 representation of counsel, selected by them, concerning their respective legal

25 liability for the claims hereby released. The Parties have read and understand fully

26 this Agreement and have been fully advised as to the legal effect thereof by

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counsel of their own selection and intend to be legally bound by the same.

10.4 No Admission or Concessions. Whether or not the Effective Date

occurs or the Settlement Agreement is terminated, neither this Agreement nor the

settlement contained in this Agreement, nor any act performed or document

executed pursuant to or in furtherance of this Agreement or the settlement:

a) is, may be deemed, or shall be used, offered or received

against the Released Parties, or each or any of them, as an admission, concession,

or evidence of, the validity of any Released Claims, the truth of any fact alleged by

the Plaintiffs, the deficiency of any defense that has been or could have been

asserted in the Action, the violation of any law or statute, the reasonableness of the

settlement amount or the fee award, or of any alleged wrongdoing, liability,

negligence or fault of the Released Parties, or any of them;

b) is, may be deemed, or shall be used, offered, or received

against the Settlement Class as an admission, concession, or evidence of any fault,

misrepresentation, or omission with respect to any statement or written document

approved or made by the Released Parties, or any of them;

c) is, may be deemed, or shall be used, offered, or received

against the Released Parties, or each or any of them, as an admission or concession

with respect to any liability, negligence, fault or wrongdoing as against any

Released Parties, in any civil, criminal, or administrative proceeding in any court,

administrative agency, or other tribunal. However, the settlement, this Agreement,

and any acts performed or documents executed in furtherance of or pursuant to this

Agreement or Settlement may be used in any proceedings as may be necessary to

enforce the provisions of this Agreement. If this Settlement Agreement is approved

by the Court, any of the Parties or any of the Released Parties may file this

Agreement or the Final Order in any action that may be brought against such Party

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1 or Parties in order to support a defense or counterclaim based on principles of res

2 judicata, collateral estoppel, waiver, release, accord and satisfaction, good faith

3 settlement, judgment bar or reduction, or any other theory of claim preclusion or

4 issue preclusion or similar defense or counterclaim;

5 d) is, may be deemed, or shall be construed against Plaintiffs, the

6 Settlement Class or each or any of them, or against the Released Parties, or each or

7 any of them, as an admission or concession that the consideration to be given

8 hereunder represents an amount equal to, less than, or greater than that amount that

9 could have or would have been recovered after trial; and

10 e) is, may be deemed, or shall be construed as or received in

11 evidence as an admission or concession against Plaintiffs, the Settlement Class, or

12 each and any of them, or against the Released Parties, or each or any of them, that

13 any of Plaintiffs' claims are with or without merit or that damages recoverable in

14 the Action would have exceeded or would have been less than any particular

15 amount.

16 10.5 Headings/Captions. The headings used in this Agreement are used

1 7 for the purpose of convenience only and are not meant to have legal effect.

18 10.6 Waiver. The waiver by one Party of any breach of this Agreement by

19 any other Party shall not be deemed as a waiver of any other prior or subsequent

20 breaches of this Agreement. The Parties agree that this Agreement may not be

21 waived except by a writing signed by the Class Representative and a duly-

22 authorized representative of Defendant.

23 10. 7 Recitals and Exhibits. All the Recitals and Exhibits to this

24 Agreement are material and integral parts of it and are fully incorporated into this

25 Agreement by this reference.

26 10.8 Entire Agreement. This Agreement and its Exhibits set forth the

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1 entire agreement and understanding of the Parties with respect to the matter set

2 forth herein, and supersede all prior negotiations, agreements, arrangements, and

3 undertakings with respect to the matters set forth herein. No representations,

4 warranties, or inducements have been made to any Party concerning this

5 Settlement Agreement or its Exhibits other than the representations, warranties,

6 and covenants contained and memorialized in such documents. This Agreement

7 may be amended or modified only by a written instrument signed by or on behalf

8 of each of the Parties and their duly-authorized representatives or their respective

9 successors-in-interest.

10 10.9 Defendants' Fees and Costs. Defendant shall bear its own attorneys'

11 fees and costs.

12 10.10 No Assignments. All Parties represent and warrant that they have not

13 assigned any claim or right or interest therein as against the Released Parties to

14 any other Person or Party and that they are fully entitled to release the same.

15 10.11 Authorized Signatures. Each counsel or other Person executing this

16 Settlement Agreement, any of its Exhibits, or any related settlement documents on

17 behalf of any Party to this Agreement warrants and represents that such Person has

18 the full authority to do so and has the authority to take appropriate action required

19 or permitted to be taken pursuant to the Agreement to effectuate its terms.

20 10.12 Counterparts Same as Original. This Agreement may be executed

21 in one or more counterparts. All executed counterparts and each of them shall be

22 deemed to be one and the same instrument provided that counsel for the Parties to

23 this Agreement all exchange original signed counterparts. A complete set of

24 original executed counterparts shall be filed with the Court if the Court so

25 requests.

26 10.13 Successors and Assigns. This Settlement Agreement shall be binding

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1 on, and inure to the benefit of, the successors and assigns of the Parties to this

2 Agreement and the Released Parties. The Parties represent, covenant, and warrant

3 that they have not directly or indirectly assigned, transferred, encumbered, or

4 purported to do so to any person or entity any portion of any liability, claim.,

5 demand, action, cause of action, or rights released and discharged as set forth in

6 this Agreement.

7 10.14 Jurisdiction Over Agreement. This Court shall retain jurisdiction

8 with respect to irnplernentation and enforcement of the terms of this Agreement,

9 and all Parties to this Agreement submit to the jurisdiction of the Court for

10 purposes of irnplernenting and enforcing the settlement em.bodied in this

11 Agreement.

12 10.15 Stay of Proceedings Pending Preliminary and Final Approval.

13 All proceedings in the Action shall be stayed and abated following entry of the

14 Preliminary Approval Order, except as rnay be necessary to irnplernent the

15 Settlement Agreement or corn.ply with the terms of the Settlement. Pending

16 determination of whether the Settlement Agreement should be granted final

1 7 approval, the Parties in the Action agree not to pursue any claims or defenses

18 otherwise available to them..

19 10.16 No Admissions or Concessions. Whether or not the Settlement

20 Agreement is signed or otherwise approved or if this Settlement Agreement is

21 terminated, neither this Settlement Agreement not the settlement contained herein,

22 nor any act performed or document executed pursuant to or in furtherance of this

23 Agreement or the settlement rnay be deemed, or shall be used, offered or received

24 against the Released Parties, or each or any of them., as an admission, concession

25 or evidence of, the validity of any Released Claims, the truth of any fact alleged

26 by the Plaintiff, the deficiency of any defense that has been or could have been

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1 asserted in the Action, the violation of any law or statute, the reasonableness of the

2 settlement amount or the fee award, or of any alleged wrongdoing, liability,

3 negligence, or fault of the Released Parties, or any of them. Additionally, neither

4 the Settlement, nor any act performed or document executed pursuant to or in

5 furtherance of the Settlement, is or may be deemed a waiver of 7-Eleven's right to

6 challenge the Court's prior grant of class certification if this Settlement for any

7 reason does not become Final.

8 10.17 Applicable Law. This Settlement Agreement shall be governed by

9 and construed in accordance with the laws of the State of California.

10 10.18 Arms-Length Negotiations. This Agreement is deemed to have been

11 prepared by counsel for all Parties, as a result of arm's-length negotiations among

12 the Parties with the aid of a neutral mediator. Whereas all Parties have contributed

13 substantially and materially to the preparation of this Agreement, it shall not be

14 construed more strictly against one Party than another.

15 10.19 Notice to Parties and Counsel. Where this Agreement requires

16 notice to the Parties, such notice shall be sent to the undersigned counsel by email

17 to their designated accounts in the Action, certified mail in care of the United

18 States Postal Service (USPS) or by overnight mail in care of the USPS or such

19 recognized commercial carrier as Federal Express, UPS or the like with proof of

20 delivery:

21 (a) For Plaintiff & the Class: Steven L. Woodrow, Patrick H. Peluso,

22 Woodrow & Peluso, LLC, 3900 East Mexico Avenue, Suite 300, Denver,

23 Colorado 80210, [email protected],

24 [email protected]; and

25 (b) For 7-Eleven: Julie R. Trotter, Delavan J. Dickson, and Kent R.

26 Christensen CALL & JENSEN, 610 Newport Center Drive, Suite 700,

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Newport Beach, California 92660, [email protected],

ddisckson@callj ensen. com, [email protected]

[SIGNATURE PAGE FOLLOWS]

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07/27/2019

Doc ID: 4a6b158831a6e7725d474a7c55987dbef7e29e2b

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For Plaintiff and the Class

EDWARDO MUNOZ

£dw(M'do MIA.noZ

Date: --------------

For Defendant

7-ELEVEN, INC.

By: tzoA.J~ ,_:> l_ c;. c G?J

Title: ~ V -> '>~ e,APw-6

- 40 -STIPULATION OF SETTLEMENT

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Approved as to form by counsel for the Parties:

WOODROW & fl LUSO, LLC

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- 41 -STIPULATION OF SETTLEMENT

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EXHIBIT A

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CALL 1-800-000-0000 FOR THE SETTLEMENT ADMINISTRATOR OR 720-213-0676 FOR CLASS COUNSEL

UNITED STATES DISTRICT COURT FOR THECENTRAL DISTRICT OF CALIFORNIA, WESTERN DIVISION

If 7-Eleven, Inc. (“7-Eleven”) Obtained a Background Check in Regard to YourActual or Prospective Employment, You Could Get a Payment from a

Class Action Settlement

A Federal Court authorized this notice. This is not a solicitation from a lawyer.

• A Settlement has been reached in a class action lawsuit about whether 7-Eleven useda disclosure form when it obtained background checks about its applicants andemployees that complied with the Fair Credit Reporting Act, 15 U.S.C. § 1681b etseq. (“FCRA”) and whether 7-Eleven provided other notices required by the FCRA.

• Persons included in the Settlement who file valid Claim Forms will be eligible toreceive a payment from the Settlement Fund up to five-hundred fifty dollars ($550).The actual amount of the payments will be based on the number of valid claim formssubmitted, administrative costs, and any incentive award or attorney’s fees andexpenses approved by the Court.

• Please read this notice carefully. Your legal rights are affected whether you act, ordon’t act.

YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT

SUBMIT A CLAIM FORM This is the only way to receive a payment.

EXCLUDE YOURSELF You will receive no benefits, but you will retain any rights youcurrently have to sue the Defendant about the claims in thiscase.

OBJECT Write to the Court explaining why you don’t like theSettlement.

GO TO THE HEARING Ask to speak in Court about your opinion of the Settlement.

DO NOTHING You won’t get a share of the Settlement benefits but still giveup your rights to sue the Defendant about the claims in this case.

These rights and options – and the deadlines to exercise them – are explained in this Notice

BASIC INFORMATION

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CALL 1-800-000-0000 FOR THE SETTLEMENT ADMINISTRATOR OR 720-213-0676 FOR CLASS COUNSEL

1. Why was this Notice issued?

A Court authorized this notice because you have a right to know about the proposed Settlement of thisclass action lawsuit and about all of your options, before the Court decides whether to give final approvalto the Settlement. This Notice explains the lawsuit, the Settlement, and your legal rights.

Judge R. Gary Klausner of the U.S. District Court for the Central District of California is overseeing thiscase. The case is known as Edwardo Munoz v. 7-Eleven, Inc., Case No. 2:18-cv-03893-RGK-AGR. Mr.Munoz, the person who sued, is called the Plaintiff/Class Representative. The Defendant is 7-Eleven.

2. What is a Class Action?

In a class action, one or more named plaintiffs called Class Representatives (in this case, Edwardo Munoz)sues on behalf of a group or a “class” of people who have similar claims. In a class action, the courtresolves the issues for all Class Members, except for those who exclude themselves from the Class.

3. What is this Lawsuit about?

This lawsuit alleges that 7-Eleven violated the Fair Credit Reporting Act, 15 U.S.C. § 1681b et seq.(“FCRA”) by not using a “standalone” disclosure and authorization that notified applicants and employeesthat it might obtain background checks in regard to their employment. 7-Eleven denies that it violated anylaw and maintains that it could have asserted several defenses.

The Court has not determined who is right. Rather, the Parties have agreed to settle the lawsuit to avoidthe uncertainties and expenses associated with ongoing litigation.

4. Why is there a Settlement?

The Court has not decided whether the Plaintiff or the Defendant should win this case. Instead, both sidesagreed to a Settlement. That way, they avoid the uncertainties and expenses associated with ongoinglitigation, and Class Members will get compensation now rather than, if at all, years from now.

WHO’S INCLUDED IN THE SETTLEMENT?

5. How do I know if I am in the Settlement Class?

The Court in this case certified a class and subclass on October 18, 2018 (dkt. 43), defined as follows:

Disclosure Class: All persons in the United States who (1) from a date [two years] prior to thefiling of this initial complaint in this action to the date notice is sent to the Disclosure Class;(2) applied for employment with Defendant; (3) about whom Defendant procured a consumerrepot; and (4) who were provided the same form FCRA disclosure and authorization as thedisclosure and authorization form that Defendant provided to Plaintiff.

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California Subclass: All members of the Disclosure Class who reside in California.

THE SETTLEMENT BENEFITS

6. What does the Settlement provide?

7-Eleven has agreed to fund a Settlement Fund of $1,972,500 U.S. dollars. The cost to send notice to theclass and administer the Settlement, as well as attorneys’ fees and payments to the Class Representatives,will come out of this amount (see Question 13). The amount remaining after deducting these costs (the"Net Settlement Fund") will be used to pay the claims of eligible Class Members who submit valid claims.

Persons who file valid claims and who are part of this class according to 7-Eleven's records will be eligibleto receive One (1) Claimant Payment of equal value from the Net Settlement Fund.

7. How much will my payment be?

If you are member of the Class and the Court gives final approval to the Settlement, you may be entitledto receive a check for an amount equal to the value of the One (1) Claimant Payment. The amount of yourexact payment cannot be calculated at this time. Your payment will depend on the total number of validclaims that are filed, the cost of the Notice, and any incentive award to the Class Representatives andaward of attorneys' fees to Class Counsel. The Class is estimated to include approximately 59,920 persons.

8. When will I get my payment?

You should receive a check from the settlement administrator within 60-90 days after the Settlement hasbeen finally approved and/or after any appeals have been resolved in favor of the Settlement. The hearingto consider the final fairness of the Settlement is scheduled for [Fairness Hearing Date.] All checks willexpire and become void 90 days after they are issued.

HOW TO GET BENEFITS

9. How do I get benefits?

If you are a Class Member and you want to participate in the Settlement, you must complete and submita Claim Form, under penalty of perjury, by [CLAIMS DEADLINE]. The Claim form is included withthis notice and can be found by calling, toll free, 1-800-000-0000 or by contacting Class Counsel at (720)213-0676. The Claim Form can be submitted online at the Settlement Website or downloaded andsubmitted by mail.

REMAINING IN THE SETTLEMENT

10. What am I giving up if I stay in the Class?

If the Settlement becomes final, you will give up your right to sue 7-Eleven for the claims being resolvedby this Settlement. The specific claims you are giving up against 7-Eleven are described in Section 1.36of the Settlement Agreement. You will be “releasing” the Defendant and all related people as described

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in Section 1.37 of the Settlement Agreement. Unless you exclude yourself (see Questions 14 & 15), youare “releasing” the claims, regardless of whether you submit a claim form or not. The SettlementAgreement is available at www.[settlementwebsite].com.

The Settlement Agreement describes the released claims with specific descriptions, so read it carefully. Ifyou have any questions you can talk to Class Counsel listed in Questions 12 and 17 for free or you can,of course, talk to your own lawyer if you have questions about what this means.

11. What happens if I do nothing at all?

If you do nothing, you won’t get any benefits from this Settlement. But, unless you exclude yourself, youwon’t be able to start a lawsuit or be part of any other lawsuit against the Defendant for the claims beingresolved by this Settlement.

THE LAWYERS REPRESENTING YOU

12. Do I have a lawyer in the case?

The Court has appointed Steven L. Woodrow, Patrick H. Peluso, and Taylor T. Smith of Woodrow &Peluso, LLC, to be the attorneys representing the Settlement Class. They are called “Class Counsel.” ClassCounsel believes, after conducting an extensive investigation, that the Settlement Agreement is fair,reasonable, and in the best interests of the Class and Subclass. You will not be charged for these lawyers.If you want to be represented by your own lawyer in this case, you may hire one at your expense. Youmay also enter an appearance though an attorney if you so desire.

13. How will the lawyers be paid?

The Settlement Agreement allows Class Counsel to submit a petition for reasonable attorneys' fees of upto ______________ of the Settlement Fund as fees and expenses for investigating the facts, litigating thecase, and negotiating the Settlement in this matter. Class Counsel may seek, and the Court may awardless, than this amount. Under the Settlement Agreement, any amount awarded to Class Counsel will bepaid out of the Settlement Fund.

Subject to approval by the Court, Defendant has agreed to pay an incentive award to the ClassRepresentative from the Settlement Fund for his service in helping to litigate and settle this case.

EXCLUDING YOURSELF FROM THE SETTLEMENT

14. How do I get out of the Settlement?

To exclude yourself from the Settlement, you must send a letter (or request for exclusion) by mail statingthat you want to be excluded from Edwardo Munoz v. 7-Eleven, Inc. Case No. 2:18-cv-03893-RGK-AGR.Your letter or request for exclusion must also include your name, your address, the phone number thatreceived the relevant telephone calls, and your signature. You must mail your exclusion request so that itis postmarked no later than [Objection/Opt Out Deadline] to:

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CALL 1-800-000-0000 FOR THE SETTLEMENT ADMINISTRATOR OR 720-213-0676 FOR CLASS COUNSEL

Edwardo Munoz v. 7-Eleven, Inc.Case No. 2:18-cv-03893-RGK-AGR[Address Line 1][Address Line 2][TOLL FREE NUMBER]

The Court will exclude from the Class or Subclass any Class or Subclass Member who timely requestsexclusion from the Class or Subclass.

15. If I don’t exclude myself, can I sue the Defendant for the same thing later?

No. Unless you exclude yourself, you give up any right to sue 7-Eleven for the claims being resolved bythis Settlement.

16. If I exclude myself, can I get anything from this Settlement?

No. If you exclude yourself, do not submit a Claim Form to ask for benefits.

OBJECTING TO THE SETTLEMENT

17. How do I object to the Settlement?

If you’re a Class or Subclass Member, you can object to the Settlement if you don’t like any part of it.You can give reasons why you think the Court should not approve it. The Court will consider yourviews. To object, you must send a letter stating that you object to the Settlement in Edwardo Munoz v. 7-Eleven, Inc. Case No. 2:18-cv-03893-RGK-AGR, identify all your reasons for your objections(including citations and supporting evidence), and attach any materials you rely on for your objections.Your letter or brief must also include your name, your address, and your signature.

Class Counsel will file with the Court and post on the Settlement Website under the "ImportantDocuments" tab, its request for attorneys’ fees two weeks prior to the objection deadline.

If you want to appear and speak at the Final Approval Hearing to object to the Settlement, with or withouta lawyer (explained below in answer to Question Number 21), you must say so in your letter or brief. Mailthe objection to these three places postmarked no later than Month 00, 2019:

Court Class Counsel Defense Counsel

The Honorable R.Gary Klausnerc/o Clerk of the CourtRoybal Federal Buildingand U.S. Courthouse,255 East Temple StreetLos Angeles, CA 90012

Steven [email protected] & Peluso, LLC3900 East Mexico Ave.Ste. 300Denver, CO 80210(720) 213-0675

Julie R. [email protected] & JENSEN610 Newport Center DriveSuite 700Newport Beach, CA 92660949-717-3000

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CALL 1-800-000-0000 FOR THE SETTLEMENT ADMINISTRATOR OR 720-213-0676 FOR CLASS COUNSEL

18. What’s the difference between objecting and excluding myself from the Settlement?

Objecting simply means telling the Court that you don’t like something about the Settlement. You canobject only if you stay in the Class. Excluding yourself from the Class is telling the Court that you don’twant to be part of the Class. If you exclude yourself, you have no basis to object because the case nolonger affects you.

THE COURT’S FINAL APPROVAL HEARING

19. When and where will the Court decide whether to approve the Settlement?

The Court will hold the Fairness Hearing at [time] on Month 00, 2019 at the [insert where]. The purposeof the hearing will be for the Court to determine whether to approve the Settlement as fair, reasonable,adequate, and in the best interests of the Class; to consider the Class Counsel's request for an award ofattorneys’ fees and expenses; and to consider the request for an incentive award to Class Representative.At that hearing, the Court will be available to hear any objections and arguments concerning the fairnessof the Settlement.

The hearing may be postponed to a different date or time without notice, so it is a good idea to check withClass Counsel by calling [insert phone #]. If, however, you timely object to the Settlement and advise theCourt that you intend to appear and speak at the Fairness Hearing, you will receive notice of any changein the date of such Fairness Hearing.

20. Do I have to come to the hearing?

No. Class Counsel will answer any questions the Court may have. But you are welcome to come at yourown expense. If you send an objection or comment, you don’t have to come to Court to talk about it. Aslong as you mailed your written objection on time, the Court will consider it. You may also pay anotherlawyer to attend, but it’s not required.

21. May I speak at the hearing?

Yes. You may ask the Court for permission to speak at the Fairness Hearing. To do so, you must send aletter saying that it is your “Notice of Intent to Appear in Edwardo Munoz v. 7-Eleven Case No. 2:18-cv-03893-RGK-AGR” It must include your name, address, telephone number and signature as well as thename and address of your lawyer, if one is appearing for you. Your Notice of Intent to Appear must bepostmarked no later than Month 00, 2019, and be sent to the addresses listed in Question 17. You mustalso state in your objection that you plan on appearing at the hearing.

GETTING MORE INFORMATION

22. Where do I get more information?

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CALL 1-800-000-0000 FOR THE SETTLEMENT ADMINISTRATOR OR 720-213-0676 FOR CLASS COUNSEL

This Notice summarizes the Settlement. More details are in the full Settlement Agreement. You canget a copy of the Settlement Agreement by writing the Settlement Administrator at P.O. Box 0000,City, ST 00000 or by visiting www.[settlementwebsite].com. You can call the SettlementAdministrator at 1-800-000-0000 or Class Counsel at 1-720-213-0676, if you have any questions.Before doing so, however, please read this full Notice carefully.

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EXHIBIT B

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Edwardo Munoz v. 7-Eleven, Inc. CaseNo. 2:18-cv-03893-RGK-AGR[Settlement Administrator][Address Line 1][Address Line 2][Address Line 3]

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Summary NoticeYou are receiving this notice because you have been identified as a settlement class memberin Edwardo Munoz v. 7-Eleven, Inc. 2:18-cv-03893-RGK-AGR, pending in the U.S. DistrictCourt for the Central District of California. The Court has preliminarily approved a settlementthat could impact your legal rights, whether you act or not. This is only a summary of the FullNotice. Visit www.[website].com to read the Full Notice, submit a Claim Form, and viewimportant court dates and documents�

Nature of the Action. This lawsuit alleges that 7-Eleven obtained background checksregarding applicants and employees in violation of the Fair Credit Reporting Act, 15 U.S.C.§ 1681b, et. seq. The Class Representative claims that 7-Eleven obtained the backgroundchecks unlawfully insofar as it didn’t provide a standalone disclosure and authorization asrequired by the Act prior to procuring the background check report. 7-Eleven denies that itviolated any laws and asserts several defenses. The Court has not determined who is right.Rather, you are receiving this legal notice because your rights may be impacted by thesettlement regardless of whether you file a claim.

How Do I Know if I am a Class Member? You fall into the definition of the SettlementClass if you applied to work at 7-Eleven from _____________ to ________________ andhad 7-Eleven obtained a background check regarding your employment.

What are My Options? You may submit a Claim Form to be paid your share of the NetSettlement Fund (equal to the Settlement Fund of $_______________ less all approvedSettlement Administration Expenses, and any Incentive Awards and the Fee Award to ClassCounsel). You can discuss the case with Class Counsel. You may also enter an appearancethough an attorney if you so desire. You may also request to be excluded, and the Court willexclude any member who timely requests exclusion. To request exclusion, you must mail asigned statement that says “I wish to be excluded from Edwardo Munoz v. 7-Eleven, Inc.Case No. 17-cv-11630-NGE” to the Settlement Administrator, postmarked by [opt-out/objection deadline]. Specific information is available at www.website.com. If you donothing you will be in the Class and you will also be bound by all orders and judgments ofthe Court entered under Rule 23(c)(3); however, you will NOT receive a share of the NetSettlement Fund. You MUST file a Claim Form to receive a payment. If you requestexclusion, you will not be able to participate in the settlement.

Who Represents Me? The Court has appointed Steven L. Woodrow, Patrick H. Peluso, andTaylor T. Smith of Woodrow & Peluso, LLC to be the attorneys for the Class. These attorneysare referred to as Class Counsel. You may hire your own lawyer at your own expense.

�w Do I Get More Information? For more information about the proposed settlementand a copy of the full Notice and Claim Form, go to www.[website].com, contact theAdministrator at [toll free #] or [Address] or call Class Counsel at 720-213-0676.

For all other inquiries, contact Class Counsel at:

Edwardo Munoz v. 7-Eleven, Inc.Case 2:18-cv-03893-RGK-AGRClass CounselWoodrow & Peluso, LLC3900 East Mexico Ave., Ste. 300Denver, CO 80210(720) 213-0676 [email protected]

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Epiq SystemsEdwardo Munoz v. 7-Eleven, Inc.Case No. 2:18-cv-03893-RGK-AGR[Address Line 1][Address Line 2][TOLL FREE NUMBER]

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EXHIBIT C

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Munoz v. 7-Eleven, Inc. FCRA Settlement CLAIM FORM

Edwardo Munoz v. 7-Eleven, Inc., Case No. 2:18-cv-03893-RGK-AGR

Return this Claim Form to: [Settlement Administrator], [address]. Questions, visit www.[SettlementWebsite].com or call (_________________

DEADLINE: THIS CLAIM FORM MUST BE SUBMITTED ONLINE OR POSTMARKED BY [CLAIMS DEADLINE], BEFULLY COMPLETED, BE SIGNED UNDER OATH, AND MEET ALL CONDITIONS OF THE SETTLEMENT AGREEMENT.

Instructions: If you applied for work at 7-Eleven, Inc. (“7-Eleven” or “Defendant”) and had a background check obtained regarding your employment, youmay be entitled to a monetary payment if the settlement is finally approved by the Court. If the settlement is approved, each class member, whether or not heor she submits a claim, will release the Defendant and related entities, and all their officers, agents, employees, and those working with them, from any and allclaims as a result of the background check disclosures that are the subject of this litigation. Only one claim per applicant or employee is allowed, regardless ofhow many notices were received/viewed or the number of background checks procured.

Claimants who are part of this class will receive one (1) Claim Payment from the Net Settlement Fund, which equals $1,972,500 less all SettlementAdministration Expenses, and any approved Incentive Award and Fee Award. Claim Payments will be of equal value and will not exceed $550.

YOU MUST SUBMIT THIS CLAIM FORM TO RECEIVE A SETTLEMENT PAYMENT.

Please note that if you are a Class Member, the Class Member Verification section below requires you to state, under penalty of perjury, that all informationcontained herein is true and correct.

Call Class Counsel at 720.213.0676 for Further Information

YOUR CONTACT INFORMATION

Name: _______________________________ ________ _________________________________(First) (Middle) (Last)

Current Address: ________________________________________________________________________(You must provide a street address. A P.O. box will not be accepted.)_______________________________________ ____ ____ ____ ____ ____ ____ ____(City) (State) (Zip Code)

Current Phone Number: ( ___ ___ ___) ___ ___ ___ – ___ ___ ___ ___(Please provide a phone number where you can be reached if further information is required.)

Class Member VerificationBy submitting this claim form and checking the boxes below, I declare under penalty of perjury that I applied for work at a 7-Eleven, Inc.corporate location and had a background check procured in regards to my potential or actual employment.

************************************************************************Additional information regarding the settlement can be found at [website.com].

The Claims Administrator may audit any and all claims. I declare under penalty of perjury that the foregoing is true and correct.

Signature: _________________________________ Date: _____________________________________

Print Name: ________________________________Your claim will be reviewed by the Settlement Administrator. Ifaccepted you will be mailed a check for your share of the Settlementbased on the Units for which you are eligible. Please be patient.

CLAIM FORMS MUST BE POSTMARKED NO LATER THAN [Claims Deadline] TO BE ELIGIBLE FOR PAYMENT. MAIL THIS CLAIMFORM TO: Claims Administrator, [Address]. If you have questions, you may call the Settlement Administrator at [toll-free #] or Class Counsel at1 720-213-0676.

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